May 29, 2026
Ms. Malliotakis introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes.
Section 1. Temporary increase to capital gains exclusion for sale of a primary residence by a senior
(a) In general
Section 121(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(6) Special increased exclusion for sales by certain seniors during taxable years 2027 through 2030
(A) In general
In the case of a sale or exchange of a qualifying residence after December 31, 2026, and before January 1, 2031—
(i)
in the case a qualifying senior who is not married on the date of such sale or exchange, paragraph (1) shall be applied by substituting
$1,000,000for$250,000,(ii)
the case of married individuals who make a joint return for the taxable year of such sale or exchange, if either spouse is a qualifying senior, paragraphs (2) and (4) shall each be applied by substituting
$1,000,000for$500,000each place it appears, and(iii)
in the case of a qualifying senior who is married and makes a separate return for the taxable year of such sale or exchange, paragraph (1) shall be applied by substituting
500,000for$250,000..(B) Qualifying senior
For purposes of this paragraph, the term
qualifying seniormeans an individual who is at least 65 years old on the date of such sale or exchange.(C) Qualifying residence
For purposes of this paragraph, the term
qualifying residencemeans a principal residence that has been owned by the taxpayer (in the case of a joint return, by either spouse) for at least 25 years.
(b) Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2026.